On April 30, Ethereum hit a very low price $ 202.45 amid a sharp downward correction following the strong bullish sentiment in cryptocurrency markets. However, at the time of writing, the second largest digital asset was able to regain its position and exceeded $ 214.
In general, ETH does not change during the day and even trades at 4% higher compared to the beginning of the day. At the same time, Ethereum’s market capitalization fell to $ 23 billion, with an average daily trading volume of $ 26 billion.
Ethereum Token Reduction – According to one of the Ethereum founders, Vitalik Buterin, the release of ETH will be significantly reduced after the launch of Ethereum 2.0. Speaking in the Internet Money podcast, he explained why the team decided to upgrade the network mechanism to Proof of Stake, which was criticized by the community due to slowness.
“A primary reason we are transitioning to Proof-of-Stake is basically because we wish to substantially decrease the output of tokens. Therefore, for ETH 2.0, we calculated that the theoretical maximum issue would be no more than 2 million coins per year, with the active participation of the community. ”
He expects an annual issue of between 100,000 and 2 million ETH tokens, compared to 4.7 million issued annually within the current network. In addition, large transaction volumes will lead to a net reduction in the circulation supply, as part of each commission will also be burned.